STAND. COM. REP. NO. 986-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: S.B. No. 3043
                                     S.D. 2
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Consumer Protection and Commerce, to which
was referred S.B. No. 3043, S.D. 2, entitled: 

     "A BILL FOR AN ACT RELATING TO THE STATE RISK MANAGEMENT AND
     INSURANCE ADMINISTRATION,"

begs leave to report as follows:

     The purpose of this measure is to grant the Comptroller
authority to establish a captive insurance company, that will be
owned by the State, to insure the general liabilities of state
agencies pursuant to chapter 41D, Hawaii Revised Statutes, the
State Risk Management and Insurance Administration Law.

     Testimony in support of this measure was submitted by the
Department of Accounting and General Services.  

     Testimony commenting on this measure, with proposed
amendments, was submitted by the Insurance Division of the
Department of Commerce and Consumer Affairs.  

     Upon consideration of this measure, your Committee has
amended this bill by replacing its contents with the substantive
provisions of H.B. No. 2986, H.D. 2, a similar bill that was
reported from your Committee on Finance earlier this session.

     As affirmed by the record of votes of the members of your
Committee on Consumer Protection and Commerce that is attached to
this report, your Committee is in accord with the intent and

 
 
                                 STAND. COM. REP. NO. 986-00
                                 Page 2

 
purpose of S.B. No. 3043, S.D. 2, as amended herein, and
recommends that it pass Second Reading in the form attached
hereto as S.B. No. 3043, S.D. 2, H.D. 1, and be referred to the
Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Consumer
                                   Protection and Commerce,



                                   ______________________________
                                   RON MENOR, Chair